YEREVAN, April 6. / ARKA /. An Armenian parliament member from the opposition Armenian Revolutionary Federation/Dashnaktsutyun (ARF) party blamed the Central Bank for high inflation rate that is twice the target level.
Speaking at a news conference today, Artsvik Minasian, a deputy chairman of a parliament committee on finance and budget issues, said the Central Bank must be held accountable
“No one is made accountable for the failure to meet the projected target. We suggest that the Central Bank leadership must resign if inflation rate increases 50% higher of the projected target ,” he said.
The inflation in 2010 rose by 9,4%, almost twice the projected 4% (± 1,5%). Minasian said that curbing the inflation by using only monetary instruments , as the Central Bank does, may lead to the destruction of the Armenian economy.
According to him, high inflation is caused not by a lot of money that the Central Bank is trying to reduce, but has deeper causes, like unfair competition, dominance of monopolies, closed markets as well as lack of efficient customs system. According to him, the Central Bank, the government and regulatory bodies which have the status of independent commissions, should contribute to formation of a healthy pricing system.
According to the National Statistical Service, inflation in the first quarter of 2011 rose by 5.2% and by 11.2% if compared with 2010 March, mainly due to rising prices for foodstuffs (including alcoholic beverages and tobacco products). Prime minister Tigran Sarkisian said earlier a set of measures designed by the Central Bank and the government will bring prices down by mid summer. The government has predicted a 6% inflation by yearend, the EBRD and IMF forecast is 4% (± 1,5%). -0-
